Punch sales sheltered from cold weather

Punch Taverns has improved recent sales at its managed pubs although customers stayed away during the first cold snap of winter.

Pub shake-up: New boss is reviewing Punch's future strategy

The firm said like-for-like sales in managed outlets were up 2.2% - including a 2.6% rise in food sales - during the 16 weeks to December 11.

But the recent snow knocked around one percentage point off the division's sales performance, Punch admitted.

The company said financial support for outlets in its leasehold estate had stabilised at around £2m a month. Average core earnings per leasehold pub were down 1.7% during the period following disposals.

The sales update was greeted positively by investors who sent the shares up 9%, or 5.9p, to 72.55p

Chief executive Ian Dyson, who joined the company in September from Marks & Spencer, is currently preparing a review of strategy that could see the company call time on many of its pubs.

It has been reported that he may hand the tenanted estate - pubs Punch owns but leases to independent landlords - to the group's bondholders in a radical move to tackle the company's £3bn debt pile.

The plan would allow Punch to focus on the remaining 800 pubs directly managed by Punch, which includes the Chef & Brewer chain. Mr Dyson is expected to give an update on the review in the first quarter of next year.

He added that actions already taken by the firm in both the leased and managed businesses had resulted in an improved trading performance.

'We are now looking to build on this momentum by focusing on further operational improvement across the business,' Mr Dyson said.